The production function for an entire economy is typically viewed as an aggregate of all the microeconomic firm-level production functions. The figure below depicts such an aggregate production function for an economy. The economy is currently at point A.

While Solow growth theory emphasizes the importance of the factors of production and technology, modern growth theory emphasizes the importance of institutions.

Using your knowledge of Solow growth theory and modern growth theory, what would be the effect on the aggregate production function of the imposition of trade restrictions? Shift the curve to depict the impact of the imposition of trade restrictions.